The upstart exchange traded fund industry is pushing into the separate accounts space, with more advisors and institutional investors turning to the easy-to-use, low-cost ETF managed portfolio strategies for clients.
ETF managed portfolios tracked by Morningstar now include 645 strategies from 145 firms, with $80 billion in assets under management as of of June 2013, representing 18% growth year-to-date and 46% growth year-over-year, writes Andrew Gogerty, ETF Managed Portfolios Strategist, for Morningstar.
This new bred of managed accounts are investment strategies that typically hold more than 50% of portfolio assets invested in ETFs. ETF managed portfolios are being utilized as both stand-alone investment strategies and a complete, one-stop offerings. [ETF Managed Portfolios: Disruptive Innovation and Mutual Funds]
Global strategies take up the lion’s share of the space, accounting for 64% of industry assets. Global all-asset strategies make up $29 billion and continue to attract advisors and institutional interest.
Equity managed portfolios remain the largest asset breadth group, holding $33 billion in assets.